According to Credit Suisse, it will make more cuts in its investment bank which helped it produce earnings that are more than expected for the latest quarter of the year.
The Swiss group’s investment bank just benefited recently from an increase in bond-trading and fees from the Alibaba of China’s multibillion dollar listing.
This marks the return of Credit Suisse profit following its statement that it had its major loss during the financial crisis of the second quarter. The loss is the $1.68 billion that it suffered after pleading guilty in the tax investigation by the U.S. authority.
The tax investigation results show that the Zurich-based bank stays hooked on investment baking to produce profits even if it is working hard to balance its private banking arm providing for the financial needs of the rich people.
When Financial Chief David Mathers of Credit Suisse was asked where the next cuts would come from, he didn’t give any precise answer. The bank itself said on a report that it is way too early to point a finger on where the newest cutbacks will take place.
The pretax income of the investment bank surged 43% which profited from withdrawals from pricier, less profitable activities as the fixed income trading snapped back from 2013, when it has hit by uncertainty of the bond buying of the U.S. Federal Reserve.
As a whole, Credit Suisse’s net profit went up to 1.025 billion francs for the third quarter which exceeded the forecasts of analysts and is way more than the 2013 report for the same quarter which was only 454 million francs.